Alphabet Inc. (NASDAQ:GOOG) parent company Alphabet on verge of trillion-dollar valuation

Alphabet Inc. (NASDAQ:GOOG) parent company Alphabet on verge of trillion-dollar valuation

Alphabet Inc. (NASDAQ:GOOG) parent company Alphabet on verge of trillion-dollar valuation

Google’s parent company Alphabet is on the verge of hitting a trillion-dollar stock market value for the first time, potentially becoming the fourth of the major US technology companies to reach the milestone. 

Alphabet’s market value sat at around $990bn (£762bn) as of Monday evening, as investors brushed off months of employee spats, the departure of its co-founders and ongoing competition and data privacy investigations.

Shares have climbed by 7pc this year and by more than a third in the last 12 months as it core internet advertising business continues to grow strongly, despite repeated predictions of a slowdown.

If it hits the trillion-dollar mark, it will be only the fourth US company in history to do so, following Apple, Amazon and Microsoft, which have reached the level in the last two years.

It comes despite the company facing the prospect of stricter regulation in the US and UK, where officials are investigating whether it has abused the dominant position of its search engine.

Both the Department of Justice and a group of US states are examining Google on anti-competitive grounds, while the UK’s Competition and Markets Authority has raised the prospect of its own action against the company, saying it may force it to open up about its advertising business.

The European Union has already issued the company with billions in competition-related fines over the past three years.

Last month, Google’s founders Larry Page and Sergey Brin announced they would step back from Alphabet, which they have run since restructuring Google in 2015.

Google – which includes its search engine, Android operating system and online advertising network – is now listed as one subsidiary of the Alphabet parent, which also includes driverless car division Waymo and a string of other ventures. However, Google continues to make up the vast majority of Alphabet’s revenues.

Mr Page and Mr Brin, who founded the company while studying computer science at Stanford University in 1998, made way for Google chief executive Sundar Pichai, a move that analysts said could bring more financial discipline to the Alphabet group.

The share price rise also comes despite the company facing internal turmoil. Employees have become more vocally critical of the company, which has faced allegations of sacking workers who spoke out about sexual harassment and discrimination. 

Protests were ignited by revelations in late 2018 that a high ranking smartphone executive, Andy Rubin, who co-founded Android, received a $90m exit package after being fired for an inappropriate relationship with a junior employee.

Last week Google’s top lawyer, David Drummond, announced he would be leaving after amid an investigation into alleged workplace affairs. Google said the investigation had now been left to external mediators.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 1,324.88.

The projected upper bound is: 1,476.74.

The projected lower bound is: 1,408.84.

The projected closing price is: 1,442.79.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

A hammer occurred (a hammer has a long lower shadow and closes near the high). Hammers must appear after a significant decline or when prices are oversold to be valid. When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.

A hanging man occurred (a hanging man has a very long lower shadow and a small real body). This pattern can be bullish or bearish, depending on the trend. If it occurs during an uptrend (which appears to be the case with ALPHABET INC C) it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend it is called a bullish hammer.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 93.5490. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 11 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 77.34. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 17 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 135.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed up 9.500 at 1,439.230. Volume was 25% above average (neutral) and Bollinger Bands were 50% wider than normal.

Open     High      Low     Close     Volume___
1,436.1301,440.5201,426.0201,439.230 1,653,482
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,388.18 1,334.25 1,217.03
Volatility: 20 16 29
Volume: 1,435,926 1,327,715 1,399,625

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

ALPHABET INC C is currently 18.3% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect volume flowing into and out of GOOG.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 24 periods. Our momentum oscillator is currently indicating that GOOG.O is currently in an overbought condition.

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